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2018 (3) TMI 1896 - ITAT MUMBAIExemption u/s 11 denied - letting out of a Shanmukhananda Hall - SH by a charitable institute - no charitable object - HELD THAT:- The main objection of the departmental authorities was that the SH was rented out most of the time and that it was a commercial activity. In our opinion, act of letting out of hall cannot be and should not be considered in isolation. Eligibility or otherwise of benefit u/s. 11 of the Act cannot depend solely on one factor.What has to be seen is as to whether the trust is incurring the expenditure for the objects and purposes for which it was established. We find that the issue of letting out of a hall by a charitable institute was deliberated upon by the Hon’ble Madras High Court in the case of Madras Stock Exchange Ltd [1976 (4) TMI 47 - MADRAS HIGH COURT] and Women’s India Trust [2015 (4) TMI 976 - BOMBAY HIGH COURT]. The departmental authorities have,in the past,admitted that activities carried out by it were of charitable nature. No new fact has been brought on record to prove that during the year some different incidents had taken place as compared to the earlier year to change the nature of the activities. The letting out of SH,during the period when it was not required by the trust,was not considered a commercial activity in the earlier years.It is true that principles of res judicata are not applicable to the income tax proceedings. But,at the same time it is also true that principles of consistency have to be followed while deciding the tax matters We hold that the assessee is running music school and providing medical services and it is utilising SH for augmenting its funds.In these circumstances in our opinion, it cannot be held that the it is carrying out business activities and the charitable activities are by product,as alleged by the departmental authorities.What has to seen in such cases is a holistic view of the things and not a narrower view - Decided in favour of assessee.
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